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Investopedia explains 'Distinct Business Entity'
A distinct business entity will most likely be segregated from the rest of the company based on some operational distinction, such as having a separate product line, being geographically segregated or by offering a different service then the rest of the company.
Distinct business units can be a key element for any firm, as these units have the flexibility to make daily and high level management decisions at the operational level, which frequently yields better decision making. They can take the forms, such as a corporation, association or business trust.
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